Regions Financial Corp. Receives Overweight Rating from Morgan Stanley (RF)
Regions Financial Corp. (NYSE:RF)‘s stock had its “overweight” rating restated by stock analysts at Morgan Stanley in a report issued on Wednesday, Analyst Ratings Net reports. They currently have a $12.00 target price on the stock. Morgan Stanley’s price objective indicates a potential upside of 10.50% from the stock’s previous close.
The analysts wrote, “We estimate 5% NII growth in 2014, driven by 5% EOP loan growth (3% avg growth) and avg full year NIM up 6bps y/y,” the report noted. “Loan growth is the key reason to be long the stock, in our view. 4Q loan growth took a pause as corporates tapped capital markets over banks and RF accelerated balance sheet cleanup by transferring $686mn in Troubled Debt Restructurings (TDRs) to Held for Sale (HFS). This action helped RF reduce high-cost, low yielding loans. 4Q13 EOP loans declined -1.7% q/q as a result (roughly half this decline was due to the TDR transfer). We believe RF is poised to drive accelerating loan growth given higher commitments and rising HPI in the Southeast.”
A number of other firms have also recently commented on RF. Analysts at Janney Montgomery Scott initiated coverage on shares of Regions Financial Corp. in a research note to investors on Tuesday, January 14th. They set a “buy” rating on the stock. Separately, analysts at Deutsche Bank upgraded shares of Regions Financial Corp. from a “hold” rating to a “buy” rating in a research note to investors on Friday, January 3rd. They now have a $12.00 price target on the stock, up previously from $10.00. Finally, analysts at Zacks reiterated a “neutral” rating on shares of Regions Financial Corp. in a research note to investors on Thursday, December 19th. They now have a $10.00 price target on the stock. One analyst has rated the stock with a sell rating, six have given a hold rating, seventeen have issued a buy rating and one has issued a strong buy rating to the stock. The company has a consensus rating of “Buy” and an average target price of $10.21.
Regions Financial Corp. (NYSE:RF) last released its earnings data on Tuesday, January 21st. The company reported $0.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.20 by $0.01. The company had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.31 billion. During the same quarter in the prior year, the company posted $0.22 earnings per share. The company’s quarterly revenue was up .3% on a year-over-year basis.
The company also recently announced a quarterly dividend, which is scheduled for Tuesday, April 1st. Stockholders of record on Friday, March 14th will be paid a dividend of 0.03 per share. This represents a $0.12 annualized dividend and a dividend yield of 1.10%. The ex-dividend date is Wednesday, March 12th.
Regions Financial Corporation (NYSE:RF) is a financial holding company.
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